FHA is making adjustments based on lessons learned from temporary policies established during the pandemic.

“This program will facilitate much-needed liquidity for issuers while improving the stability of the government-backed reverse mortgage market,” said Sam Valverde, Ginnie’s acting president.

FHA Commissioner Julia Gordon suggested any cut in the mortgage insurance premium would likely wait for the next administration.

Payoffs accounted for 89.1% of total loan liquidations from Ginnie MBS in the third quarter.

The rental income could account for up to 30% of the total income the loan applicant uses to qualify for an FHA mortgage.

Government mortgage insurance programs captured most of the primary MI gain in the third quarter.

Some $15.44 billion of refis were pooled into Ginnie MBS in October, a 25.7% jump from the previous month.

None of the state or local downpayment assistance programs have enough scale or funding to make a meaningful impact in addressing the challenge of accumulating a 3.5% downpayment on FHA loans, according to analysts at the Urban Institute’s Housing Finance Policy Center.

Ginnie initially planned on implementing the capital requirements at the end of 2023, along with other reforms.

Sam Valverde, acting president of Ginnie Mae, noted that Ginnie and the Department of Veterans Affairs have policies in place to prevent refis that don’t benefit borrowers and they will continue to watch for “abnormal” refi activity.